Page:United States Statutes at Large Volume 124.djvu/1598

 124 STAT. 1572 PUBLIC LAW 111–203—JULY 21, 2010 by the investment adviser, as necessary and appropriate in the public interest and for the protection of investors, or for the assessment of systemic risk by the Financial Stability Oversight Council (in this subsection referred to as the ‘Council’); and ‘‘(B) to provide or make available to the Council those reports or records or the information contained therein. ‘‘(2) TREATMENT OF RECORDS.—The records and reports of any private fund to which an investment adviser registered under this title provides investment advice shall be deemed to be the records and reports of the investment adviser. ‘‘(3) REQUIRED INFORMATION.—The records and reports required to be maintained by an investment adviser and subject to inspection by the Commission under this subsection shall include, for each private fund advised by the investment adviser, a description of— ‘‘(A) the amount of assets under management and use of leverage, including off-balance-sheet leverage; ‘‘(B) counterparty credit risk exposure; ‘‘(C) trading and investment positions; ‘‘(D) valuation policies and practices of the fund; ‘‘(E) types of assets held; ‘‘(F) side arrangements or side letters, whereby certain investors in a fund obtain more favorable rights or entitle- ments than other investors; ‘‘(G) trading practices; and ‘‘(H) such other information as the Commission, in consultation with the Council, determines is necessary and appropriate in the public interest and for the protection of investors or for the assessment of systemic risk, which may include the establishment of different reporting requirements for different classes of fund advisers, based on the type or size of private fund being advised. ‘‘(4) MAINTENANCE OF RECORDS.—An investment adviser registered under this title shall maintain such records of private funds advised by the investment adviser for such period or periods as the Commission, by rule, may prescribe as necessary and appropriate in the public interest and for the protection of investors, or for the assessment of systemic risk. ‘‘(5) FILING OF RECORDS.—The Commission shall issue rules requiring each investment adviser to a private fund to file reports containing such information as the Commission deems necessary and appropriate in the public interest and for the protection of investors or for the assessment of systemic risk. ‘‘(6) EXAMINATION OF RECORDS.— ‘‘(A) PERIODIC AND SPECIAL EXAMINATIONS.—The Commission— ‘‘(i) shall conduct periodic inspections of the records of private funds maintained by an investment adviser registered under this title in accordance with a schedule established by the Commission; and ‘‘(ii) may conduct at any time and from time to time such additional, special, and other examinations as the Commission may prescribe as necessary and appropriate in the public interest and for the protection of investors, or for the assessment of systemic risk.